Alibaba seeks HK$80 billion in share sale to boost AI

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Alibaba seeks HK$80 billion in share sale to boost AI
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Yahoo! Finance

Alibaba is offering 710 million shares at HK$112.7 each, seeking about HK$80 billion (roughly $10.2 billion) in what would be Hong Kong's largest follow-on offering on record. The placement is priced at a 3.6% discount to its ADR closing and carries a 90-day lockup, with China International Capital Corp., HSBC, Morgan Stanley and UBS arranging the deal. Alibaba says proceeds will fund full-stack AI capabilities and infrastructure as it scales quarterly capital spending toward almost $10 billion; the company reported a more than 75% profit slump and a $6.6 billion free-cash outflow for the June quarter.

Alibaba to raise about HK$80 billion to fund AI infrastructure

Context

Alibaba has raised its quarterly capital spending to almost $10 billion because of AI projects. Its June quarter profit fell more than 75% and cash flow was negative. The company may use the share sale proceeds to build AI infrastructure…

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